IMES DISCUSSION PAPER SERIES Structural Issues in the Japanese Labor Market – An era of variety, equity and efficiency or an era of bipolarization? – Toshiaki Tachibanaki, Hiroshi Fujiki, Sachiko Kuroda Nakada Discussion Paper No. 2000-E-22 INSTITUTE FOR MONETARY AND ECONOMIC STUDIES BANK OF JAPAN C.P.O BOX 203 TOKYO 103-8660 JAPAN NOTE: IMES Discussion Paper Series is circulated in order to stimulate discussion and comments. Views expressed in Discussion Paper Series are those of authors and do not necessarily reflect those of the Bank of Japan or the Institute for Monetary and Economic Studies. IMES Discussion Paper Series 2000-E-2000-E-2222 August 2000 Structural Issues in the Japanese Labor Market – An era of variety, equity and efficiency or an era of bipolarization? – Toshiaki Tachibanaki*, Hiroshi Fujiki**, Sachiko Kuroda Nakada*** Abstract This paper describes several structural changes in the Japanese labor market and related institutional factors with special emphasis on the labor supplies of women, older workers, youths and discouraged workers. We also discuss the implications of such structural changes on the conduct of monetary policy and necessary reforms in the labor market. Key Words: part-time worker, discouraged worker, Japanese employment system, unemployment JEL Classification: J21, J31, E58, H55 * Professor, Kyoto Institute for Economic Research, Kyoto University ** Institute for Monetary and Economic Studies and Financial Markets Department, Bank of Japan (E-mail:
[email protected]) *** Institute for Monetary and Economic Studies, Bank of Japan (E-mail:sachiko.kuroda @boj.or.jp <new address>) This paper was presented at the conference on “The Role of Monetary Policy under Low Inflation: Deflationary Shocks and their Policy Responses” on July 3-4, 2000 at the Bank of Japan.